News: Debt laden Jet Airways to clear all salary dues by April

Debt laden Jet Airways to clear all salary dues by April

As per sources, 25 percent of the October salary as well as 75 percent of the November salary would be paid in January.

Relief for Jet Airways employees might be in sight. Debt-laden Jet Airways has told its pilot union yesterday that it will clear all salary dues by April. The airline has also given them a schedule outlining when the payments will be made as per sources close to the development.

As per the schedule, the debt-laden carrier has told the union it will pay a quarter of the salary for October on Thursday and 50 per cent during December. The remainder will be paid in January, along with 75 per cent of the salary for November.

The remaining dues for November, salary for December and 25 per cent for January will be paid in the month of February. In March, Jet will clear the remainder for January and February and thereafter all dues will be paid on time.

The sources said the payment schedule was discussed with pilots during their meeting with Jet Airways CEO Vinay Dube. The schedule also states that salaries would become current from April 2019 and 100 per cent of March salary would be paid in the month of April itself.

Jet Airways is grappling with financial woes and is in discussions with several investors to raise funds. While Tata Sons Ltd was in preliminary talks with Jet but has not made any offer to buy a stake. Meanwhile, the airline has been delaying salary disbursement to its senior management, pilots, and engineers since August. This month also saw the resignation of two board members Ranjan Mathai and Vikram Mehta.

While the news is some sort of relief for the employees, the airline is also continuing with its firing spree to cut costs. In the latest development, the airline company has given pink slips to 16 employees working in their Kochi and Hyderabad offices. As long as the investment doesn’t materialize, it seems things will look tricky at the airline.

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